According to CoinDesk, privacy-focused digital asset Monero (XMR) has recently shown signs of a bullish momentum shift by breaking out of a prolonged basing pattern. This pattern, characterized by low-volatility price consolidation, persisted for over two years, with Monero's price fluctuating between $100 and $200. This range represented a demand-supply equilibrium following a significant drop from its 2021 highs, which exceeded $500.
The recent price movement suggests that Monero has established a stable position above the $200 mark. This development indicates that the floating supply at bear market lows has been absorbed, paving the way for potential upward movement. Analysts who follow the Wyckoff analysis method would interpret this as the path of least resistance being upward. The next major resistance level for Monero is identified at $287, which was the lower high reached in April 2022. However, if Monero's price were to revert to the previous sideways channel, it would negate the current bullish outlook.
